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Issue Number: COVID Tax Tip 2022-08
Here are reasons people who don't normally file should file a 2021 tax return
With tax filing season is just around the corner, this is a good time for those who don't normally file to consider the benefits of filing a 2021 tax return. Filing can help them claim a refundable tax credit or get an income tax refund.
Here are some things taxpayers should consider when deciding whether to file a tax return:
Find out the general reasons to file
In most cases, income, filing status and age determine if a taxpayer must file a tax return. Other rules may apply if the taxpayer is self-employed or can be claimed as a dependent of someone else. There are other reasons when a taxpayer must file. The Interactive Tax Assistant can help someone determine if they the need to file a return.
Look at tax withheld or paid
Here are a few questions for taxpayers to ask themselves:
If the answer is yes to any of these questions, they could be due a refund. They must file a 2021 tax return to get their money.
Look into whether they can claim the earned income tax credit
A working taxpayer who earned $57,414 or less last year could receive the EITC as a tax refund. For the 2021 tax year, the tax return taxpayers file in 2022, the earned income credit ranges from $1,502 to $6,728 depending on their filing status and how many children they claim on their tax return. The law allows taxpayers to use either their 2020 income or 2021 income to calculate their EITC — taxpayers may choose whichever amount gives them a larger credit. They can check eligibility by using the EITC Assistant on IRS.gov. Taxpayers need to file a tax return to claim the EITC. By law, the IRS cannot issue refunds to taxpayers claiming EITC until mid-February.
Child tax credit or credit for other dependents
The Child-Related Tax Benefits page of IRS.gov can help people determine if they qualify for these two credits.
Recovery rebate credit
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